UK budget update disappoints consumers as inflation soars

Britain’s Treasury chief has announced a package of tax cuts and support payments that fell far short of what consumer advocates had demanded to shield working families from the soaring cost of living

LONDON -- Britain’s Treasury chief on Wednesday announced a package of tax cuts and support payments that fell far short of what consumer advocates had demanded to shield working families from the soaring cost of living, triggering criticism that he doesn’t understand the scale of the crisis.

Rishi Sunak cut fuel taxes by 5 pence per liter, increased the level at which people begin paying for social insurance and said the government would provide an additional 500 million pounds ($659 million) for local councils to use to assist low-income residents. But the situation was already dire, with inflation at its highest level in 30 years and the impact of Russia's war in Ukraine eating into forecasts for economic growth.

“The government will support the British people as they deal with the rising costs of energy," Sunak told the House of Commons. “People should know that we will stand by them, as we have throughout the last two years.’’

He rejected calls to delay a 1.5% increase in income taxes set for next month and offered no tax on windfall profits from energy companies benefiting from the rising cost of oil and natural gas. The tax was the central demand of the opposition Labour Party, which immediately attacked the plan from Prime Minister Boris Johnson's government.